Covestor model: Tactical and Opportunistic
Disclosures: Long IVR, AGNC, FTR
August 7, 2011
The market declined during the last week of July and the first week of August. But it’s times like this where I like to position my portfolio. I have a large position in Frontier Communications Corp (NYSE: FTR) and American Capital Agency Corp. (NASDAQ: AGNC). I covered our short position on Dell Inc (NASDAQ: DELL) at the end of July.
Let me reiterate my positions as of 8/7/11. First, AGNC and Invesco Mortgage Capital Inc (NYSE: IVR). Rates are down, bonds are up, and the Fed fund futures doesn’t show rate increases anytime soon. All good things for AGNC and IVR.
My last position is FTR. It missed earnings by a cent and the stock took a beating after that. Looking closer, FTR is spending its money to integrate its purchase from Verizon.
What I like about these three holdings is that they pay dividends. So while volatility hammers the market, we can sit on our holdings and wait it out while collecting dividends.
FTR 10-Q, https://www.sec.gov/Archives/edgar/data/20520/000002052011000046/0000020520-11-000046-index.htm